Quote History Quoted:
Pay the balance of loan to credit union, extra to seller, credit union sends you the title
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Last part isn't necessarily correct - sure isn't that way here, and I'd actually be surprised if it were correct anywhere.
The party with the lien merely has a lien against the title - when they release the lien, they don't assume ownership, and therefore can't give you the title. It's not theirs to give. The soon-to-be-previous owner still has to sign the title over to the buyer, once the lien is removed.
But otherwise, yes. Send off a check or otherwise arrange payment with the financial institution, with the remainder to the seller.
I would only do so if you are taking possession of the vehicle - I did this once before, and I was okay with it in part because of that fact. I had the car, a check for the bank, and a bill of sale. He had the extra cash and a copy of the bill of sale. When the bank released the lien, we then met up one last time to transfer the title. (He could have gotten the title, signed it over, and sent it to me, but it made more sense to just meet up at the BMV, since we would both have to each go there anyway.)